August 24, 2012

US grain shortage may benefit Minerva, Brazil

Meat packing company Minerva and Brazil as a whole, will likely benefit from the US grain shortage when it comes to meat exports.

Unlike the Brazilian industry, which uses pasture to feed 90% of its livestock, the US rely mostly on grain, because its cattle remains confined for longer periods. As a result, USA beef production will suffer, making way for Brazil, especially in regions such as the Middle East, Far East, and Eastern Europe.

"From the supply perspective, the US will cease being a player to become an importer," said Minerva CEO Fernando Galletti de Queiroz during a press conference in Barretos, in the state of Sao Paulo, during which the company introduced its new logo and marketing strategy to journalists. Minerva will start using the name Minerva Foods in all its products, and strive to strengthen its image on the market.

Not citing any figures, Queiroz claimed that there will be more room for Brazilian beef in Africa and South America as well. In addition to the US' being unable to export, Australia will probably sell more meat to the USA, thus leaving other markets open. Minerva has already performed well in the second half of this year, export-wise, at 277,000 tonnes shipped, up 8.6% from the same period of last year. The Arab countries are a major market to Minerva.

From April-June this year, Egypt accounted for 10.5% of exports, and Saudi Arabia answered to 5.1%. The only country which imported more than Egypt was Russia, at 31.5%. Minerva has nine offices around the world, three of which are in Arab countries: Lebanon, Algeria and Saudi Arabia. The company does halal slaughter, in accordance with Islamic law, a requirement in some Arab countries.